Financial Assistance

The RAF Lakenheath Military and Family Readiness Center's Personal Financial Readiness Program offers confidential, individualized financial planning assistance to service members, DOW civilians, contractors, retirees and their families. The overall focus of our program is to equip you with the principles and concepts needed to achieve and maintain long-term financial readiness. Whether you are establishing your first budget or navigating complex financial decisions, you can take advantage of our personalized services or attend one of our many educational workshops.

Our certified M&FRC staff members, along with our dedicated Personal Financial Counselor, are available for one-on-one appointments to assist with a wide variety of financial goals. During your one-on-one appointment, a financial counselor will guide you through the specific training required at your current touchpoint.

Touchpoints include:

• Birth/adoption – first child
• Continuation pay
• Disabling condition
• Divorce
• Marriage
• Permanent change of station
• Thrift Savings Plan vesting

Through the integration of our PFC, we offer an extra layer of specialized, confidential financial coaching tailored to your unique situation. Together, our team provides expert guidance on budgeting, saving and investing, Thrift Savings Plan management, debt management and comprehensive credit report reviews.

Helpful Hints to Get You Started

As soon as you receive notice of your relocation to RAF Lakenheath, we highly encourage you to review your financial situation and create a spending plan that includes your current finances and projected future expenses. A permanent change of station always brings unplanned costs; preparation is the key to a successful move. If you need assistance creating a relocation spending plan, please contact the Military and Family Readiness Center at your current location before you depart.

Phone Service

Managing your cell phone service is another critical step. Before departing the U.S., contact your current carrier to discuss your options. If your phone is fully paid off and "unlocked," you can often save money by purchasing a flexible, month-to-month SIM card from a U.K. provider upon arrival. If you wish to keep your U.S. phone number for texts and two-factor authentication, consider researching VoIP, or Voice over Internet Protocol, services that allow you to "port" or park your number digitally. Again, while we cannot endorse specific tech companies, researching number-parking services before you cancel your U.S. plan can prevent you from losing access to vital accounts.

Banking and the Great British Pound (£)

When budgeting for your move, it is important to understand the local currency and how it impacts your pay. The local currency is the Great British Pound (£). Because the value of the pound fluctuates daily against the U.S. dollar, these changes directly impact your monthly Overseas Cost of Living Allowance. COLA is supplemental pay designed to equalize purchasing power between service members stationed overseas and their stateside counterparts. You can check current exchange rates online and find current COLA rates via the Defense Travel Management Office Overseas COLA Rate Lookup site.

Banking and paying bills in the U.K. require careful consideration of foreign transaction and currency conversion fees. When paying rent and local utilities, U.K. landlords and companies typically require funds to be transferred electronically via a U.K. "sort code" and account number system. You will need to decide how to manage these currency conversions securely. While the M&FRC cannot recommend specific financial institutions or third-party transfer apps, we strongly advise researching international banking solutions or currency exchange services prior to arrival to minimize monthly transfer fees.

Value Added Tax

You will also encounter the Value Added Tax, or VAT, which is a 20% tax levied on most products and services in the U.K., similar to U.S. sales tax (with exceptions for basic food items and children's clothing). This tax does not apply to purchases made on base. After you arrive, contact the base VAT office for information on the U.S. Visiting Forces VAT relief program and how you can make tax-free purchases on the local economy for items over £100.

Renting a Home in the U.K.

If you plan to live off base, you will receive an Overseas Housing Allowance and a Utility Allowance based on your rank and dependency status. Finding an affordable home within your allowance is crucial because exchange rate fluctuations can impact your out-of-pocket expenses. Be prepared for high initial move-in costs: U.K. landlords typically require a minimum of one month's rent plus a security deposit upfront. This can easily exceed $5,000 out of pocket. While advance pay options are available to help cover these expenses, remember that advances are automatically deducted from your future paychecks, reducing your monthly income. You can research local housing sizes and costs before you arrive by browsing popular U.K. real estate websites like Rightmove.

When it comes to utilities, your allowance is generally sufficient to cover your usage if you monitor your consumption. Unlike the U.S., some U.K. utility companies bill quarterly instead of monthly, which can cause a sudden financial burden if you have not been setting aside your monthly allowance. We recommend asking your U.K. utility providers to set up a monthly direct debit to make budgeting easier. You can find current OHA and Utility Allowance rates by visiting the Defense Travel Management Office OHA Rate Lookup site.

Vehicle Expenses

If you are shipping a U.S. spec vehicle (to include motorcycles) to the UK, there are a few expenses to plan for:

Light Conversion

Due to the different specification requirements of U.S. and UK vehicles, such as headlight orientation, turn signal placement/ color and addition of a rear fog light, your vehicle will likely require some type of conversion before it will pass the mandatory annual Ministry of Transport safety inspection. The cost can vary from $50-$300 depending on the type of vehicle and modifications needed and, in some cases, can be much higher for newer vehicles equipped with LED lighting. The on-base Auto Hobby facility can assist with the conversion as well as some auto repair centers on the local economy.

Ministry of Transport Safety Inspection

The MOT inspection is an annual requirement and must be completed prior to the vehicle being registered for road use in the U.K. The inspection can be completed at several off-base service centers, and the fee is capped at around £55 (roughly $70) and is in addition to fees associated with any conversion expenses.  

Road Tax

The U.K. also requires a mandatory road tax, similar to a registration fee in the states. The fee is based on the vehicle’s emissions and can range from £50 to well over £500 for high-emission vehicles.

Expanded official guidance on UK driving requirements, MOT inspections, and road tax costs can be found by visiting GOV.UK's Driving and Transport website.

Insurance

Before you decide to ship a vehicle, we highly encourage you to research the cost of auto insurance in the U.K. The rates are heavily influenced by age, driving history and vehicle power, with young drivers frequently paying over $2,500 for an annual premium. One recommendation to lower the cost is to obtain a “No Claims” letter from your current provider that proves consecutive claims-free years, as many UK insurers will offer a discount if provided. (Please note: The M&FRC provides this information to aid in financial planning but does not offer direct advice or services regarding vehicle insurance).